IDFC FIRST Bank Receives ₹514.82 Crore from CGFMU Claim for Microfinance Portfolio

IDFC FIRST Bank has announced the receipt of ₹514.82 crore as part of a claim related to its microfinance portfolio under the Credit Guarantee Fund for Micro Units (CGFMU) Scheme.  

This payout represents 100% of the claim submitted by the bank. 

Details of the CGFMU Claim 

The bank's microfinance loans, primarily lent to women entrepreneurs under a Joint Liability Group structure, have been covered under the CGFMU Scheme.  

The payout pertains to eligible microfinance loans sanctioned up to March 2025, ensuring full coverage of the claim submitted by the bank. 

Previously, IDFC FIRST Bank had made provisions for these microfinance defaults. The receipt of ₹514.82 crore is expected to be a write-back of these provisions, positively impacting the bank's financials. 

Coverage Under the CGFMU Scheme 

As of January 2024, approximately 97% of all new microfinance loan originations by IDFC FIRST Bank are covered under the CGFMU Scheme. This extensive coverage highlights the bank's commitment to mitigating risks associated with microfinance lending. 

Read More: Slice Small Finance Bank Reports 1st-Ever Profit of ₹48.4 Crore in FY26! 

Implications for IDFC FIRST Bank 

The successful claim under the CGFMU Scheme underscores IDFC FIRST Bank's proactive approach in managing its microfinance portfolio. The write-back of provisions is expected to enhance the bank's financial position, reflecting its strategic risk management practices. 

IDFC First Bank Share Price Performance  

As of May 27, 2026, at 3:30 PM, IDFC First Bank share price on NSE was closed at ₹71.48 up by 1.79% from the previous closing price. 

Conclusion 

IDFC FIRST Bank's receipt of ₹514.82 crore from the CGFMU claim marks a significant financial event for the bank. The full coverage of the claim and the anticipated write-back of provisions demonstrate the bank's effective management of its microfinance portfolio. 

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